2. -Predstavljanje Učesnika
- Razlog dolaska i Očekivanja
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-2
3. IIOSS UVOD
ašto Japan ?
ta je učinilo Japan 2 svjetskom ekonomijom ?
oncept Zero Efekat (Vizija)
adoholičari (Znoj)
izija + Znoj = Japan No 2
apanski Inžerenjing i Kalifornijska Kreativnost
IOSS (15 godina istraživanja, 2 godine testiranja,)
Transformation Professionals
0.000 simptoma, 2.000 kompanija u cijelom svijetu
08.12. 2009 Confidential/Proprietary Slide-3
4. ŠTA JE IIOSS ?
Japanska kompanija iz Tokija (CEO Seitaro Ishi)
Nova, jedinstvena i inovativna metodologija IIOSS
Po prvi put u konsultantskom poslu na brz, egzaktan
i praktičan način se dijagnosticira stanje kompanije
Jedinstvene alatke – Profileri (OP i MP)
Reporti OP i MP i Transformacione usluge
Transformation Professionals
08.12. 2009 Kompletan poslovni sistem analiza – dijagnoza –
Confidential/Proprietary Slide-4
5. PREDNOSTI IIOSS-a
Na automatizovan softverski način se
postavlja dijagnoza (nema više nagadjanja)
Sveobuhvatan (Holistički) pristup kroz 10 karakterist.
Daje jasnu sliku GAP – ova poslovanja i
simptoma bolesti Kompanija
Ukazuje na mjere poboljšanja (Road Map)
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-5
6. IIOSS Misija: Obezbjediti kompanijama
dijagnostičke i terapeutske alatke i usluge koje će
dramatično poboljšati njihove sveukupne
performance postajući globalni.
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-6
8. description
analysis
transformation
… of business
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-8
9. description analysis transformation
business
disharmony
diagnosis treatment
entities and relationships
business in harmony
ORGANIZATION ENTITY TRANSFORMATION
PROFILER PROFILERS CONSULTING
Dijagnoza dobi & Dijagnozom Dubok tretman entiteta
Zdravlja Disharmonija
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-9
10. IIOSS Business Model
IIOSS Diagnostic IIOSS Transformation
IIOSS Basic Model
Tools Services
Organization Profiler On-Site Diagnosis
Management Profiler SeiJuku Lifecycle Model Vision/Mission Creation
(Product/Technology Profiler) Organization Model Organization Building
(Market/Customer Profiler) Transformation Model Management Accountability
(Employee Profiler) Problem Solving
IIOSS Diagnose Report IIOSS Chief Product Office IIOSS Professionals
IIOSS Symptom Database
10,000 or more and increasing
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-10
11. IIOSS Product Introduction
Organization Profiler (OP)
Management Profiler (MP)
Basic Four Characteristics Your Score
A Accomplisher Action & Result 89.552%
R Regulator System & Control 37.313%
C Creator Vision & Creation 67.164%
Communication &
U Uniter
Organization
44.776%
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-11
12. IIOSS SeiJuku™ Organization Profiler 1/2
hat does IIOSS Organization Profiler (OP) does?
kazuje gdje je vaša kompanija
Koji su simptomi u toj fazi i šta to znači?
Koliko je zdrava vaša kompanija?
Zeleno,Žutio ili Crveno?
Zdravstveno stanje u 10 entiteta?
Ključni organizational management indicatori
• Okruženje / Kultura
• Organizaciona Struktura
• Mission
• Management Accountability
Gdje to vodi i šta će se desiti
Koji je pravi put
Koje promjene organizacija mora da napravi
ako rade OP Profileri?
Kao Individualni
President by him/her self, General manager, HR, Strategic planning
Grupna Dijagnoza
Transformation Professionals
• Company’s management team
08.12. 2009 Confidential/Proprietary Slide-12
•
13. IIOSS SeiJuku™ Organization Profiler 2/2
Group Diagnoses with management team
Grupni Pregled Vaše Kompanije kaocjeline
U kojoj fai se nalazi vaša kompanija
Koliko je zdrava vaša kompanija
Gdje vaša Kompanija ide
Koje promjene su esencijalne
Analize su dostupne sa statistikama
Razni organizational management indicators
Group Diagnoses with management team
• Management Workshop
Understanding of IIOSS theory
Review results of the CP
Additional diagnostic and group discussion
Action Planning
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-13
14. IIOSS Management Profiler (MP)
YOUR Style : cA
hat do you expect from IIOSS MP ? Creative Accomplisher
1. Pronadji svoj managemnet Stil
Basic Four Characteristics Your Score
TVOJ basic style (Dominant and sub-dominant style) A Accomplish
Action & Result 89.552%
er
TVOJE radno ponašanje System &
R Regulator
Control
37.313%
Characteristics of YOUR Style from 8 different angles Vision &
C Creator
Creation
67.164%
YOUR Relationship with other different styles Communication
U Uniter
& Organization
44.776%
Job matching with YOUR style
1. Prescription to improve YOUR management style
YOUR winning patterns
YOUR Mismanagement Style
YOUR preporuke za poboljšanje
ow does MP work for YOU?
Individual Diagnoses: YOUR own style
Group Diagnoses: Management Team group
Transformation Professionals
diagnoses
08.12. 2009 Confidential/Proprietary Slide-14
15. IIOSS MODEL ŽIVOTNOG CIKLUSA
FAZE i ZIDOVI (Kabe)
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-15
16. IIOSS Seijuku Lifecycle Model
Koliko je stara vaša kompanija?
IIOSS Organization Lifecycle model helps:
Životna dob organizacije (koja faza)
Zdravlje organizacije
Symptoms through lifecycle
Simptomi se ponavljau i predvidljivi su
Šta disharmonizira organizaciju ?
Šta je važno za Management?
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-16
17. IIOSS Seijuku Lifecycle and Organization
dje ste Vi sada ?
- Šta se dešava?
- Gdje ste se uputili ?
- Kako slijedeći zid (Kabe)izgleda ?
oliko ste zdravi ?
- Zeleno, Žuto, Crveno ?
- Koji dio je dobar , a koji loš ?
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-17
18. IIOSS SeiJuku Lifecycle Model
SeiJuku (“Prime stage”)
• Vodjeni tržištem, sa brendom
• Najbolje management prakse
• Balanans izmedju profit centara HQ
• Saturation/Aging
Maximimiziranje ROU i vrijednosti Kompanije
Transition (“Better create more”) (“Negative growth”?)
• Borba izmedju nas (starosjedioci) i njih (novopridošli) • Konzervativnost i
• Sukob izmedju kontrole i flexibilnosti izbjegavanja rizika
• Prekretnicaza osnivača i Kompaniju
• Život na staroj slavi i ne baš
puno novih proizvoda
Expansion (“More is better”) • Manje pažnje na tržište&
• Šanse vode kompaniju više fokus na unutar
• Previše prioriteta komapnije
• Velika pukotina izmedju planova i realizacije
• Veliki administrativni
troškovi
Formation (“We are in business”)
• Rizik je preuzet i Beba se rodila
• Proizvod se razvija
• Povljene narudžbe
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-18
20. SEIJUKU LIFECYCLE
description analysis transformation
Prenatal Period
Licno Zrtvovanje
tezak rad za malo
nagrade
Robovanje Klijentima
Mnogo Grešaka
Probijanje Rokova
Porodjaj Kompanije
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-20
21. SEIJUKU LIFECYCLE
description analysis transformation
Prvi Zid
Ocekivanja =
Posvecenost
Davanje vlasništva
drugim
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-21
22. SEIJUKU LIFECYCLE
description analysis transformation
1. Formation
Licno Zrtvovanje
Veliki rad za malo
nagrada
Robovanje Klijentima
Mnogo Grešaka
Probijanje Rokova
Porodjaj Kompanije
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-22
23. SEIJUKU LIFECYCLE
description analysis transformation
Drugi Zid
Izvuci se iz
“medvjedjeg zagrljaja”
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-23
24. SEIJUKU LIFECYCLE
description analysis transformation
2. Expansion
Vrijeme slave – sve se
pretvara u zlato!
Sretni dani,
uzbudjenje, mnogo
šansi
Ponekad, kompanija se
ponaša kao
nenavodjeni projektil.
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-24
25. SEIJUKU LIFECYCLE
description analysis transformation
Third Kabe
Uzmi Pauzu
Prepoznaj Limite
Nauci rece NE nekim
mogucnostima
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-25
26. SEIJUKU LIFECYCLE
description analysis transformation
3. Transition
najkriticnije vrijeme za
napredovanje
Mnogo internih borbi
za kontrolu
Nekoliko puteva za
osnivaca i Kompaniju
Arogancija,Nekontrolis
an rast,centralizovano
odlucivanje,nedostatak
Transformation Professionals
08.12. 2009 Confidential/Proprietary planova,budzeta,strukt
Slide-26
27. SEIJUKU LIFECYCLE
description analysis transformation
Fourth Kabe
Obuzdaj vatru
Fokusiraj se na
dodatni play off
Ne troši energiju na
unutrašnje borbe
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-27
28. SEIJUKU LIFECYCLE
description analysis transformation
4. SeiJuku
Kompanija u
Harmoniji
Potrebno vjezbanje
da bi se ostalo na tron
Mnogi napadi da se
preuzme tron
Još uvijek “gladni”
novi ljudi i ideja
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-28
29. SEIJUKU LIFECYCLE
description analysis transformation
Fifth Kabe
Kriza na cekanju
Mjerenja u
“negativnom rastu”
Saznaj kako ne preci
ovaj zid
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-29
32. SEIJUKU LIFECYCLE
description analysis transformation
Green Area
Izvrsno zdravlje
Disharmonije su u
normali i očekivane
Ostajanje u zelenom
iziskuje stalnu pažnju
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-32
33. SEIJUKU LIFECYCLE
description analysis transformation
Yellow Area
Mnogo Disharmonija
Trenutna pažnja
Uobičajeno,
intervencija je
uspješna.
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-33
34. SEIJUKU LIFECYCLE
description analysis transformation
Red Area
Veoma kritično stanje
trenutne akcije
Ponekad se moze
spasiti, ali cesto je
nemoguce.
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-34
36. IIOSS Organization Model
Based on research and development effort let by Chief Product Officer
(Z. Kuzmanovski), IIOSS concluded and defines Organization as:
Oraganizacija je Kompleksan sistem koji vodi kompanijski posao
Dinamičan onoliko koliko i posao ili Tajfun
Consist of 10 Entities represent 10 critical elements of Business
Employees Goals
Technology / Products Organization Structure
Money (Financial) Environment/Culture
Market and Customer Information
Management Reward
Svaki entitet je kompleksan.. Interakcija svih
10 entities je daleko više kompleksnija!
Oni reauguju u “promjenama” u poslovnom
okruženju.
Disharmonija 10 entiteta uzrokuje
Transformation Professionals organizacionu disfunkcionalnostl. To može
08.12. 2009 da čak uzrokuje totalno uništenje poslovanja.
Confidential/Proprietary Slide-36
37. Lifecycle and Organization (10 Entities)
5 Phases in Organization Lifecycle
Organization
10 Entities
Formation Expansion Transition SeiJuku™ Saturation/ Aging
Employees Survival Very busy Rumor Capability enhancement Job security
Technology M&A Driven
Product development Production rump up Standardization Product management
Product Less new products
Money Inventory Cash rich Higher G&A expenses
Under capitalization Capital investment
(Financial) Receivables M&A Cash outf low
Inconsistent ROI Conservative
Goals Materializing the dream Very high
Unclear Corporate value Looks good, but?
Organization Flat Functional Metrics Powerf ul HQ
Divisionalization
Structure Everything by top Sales driven Marketing driven Bureaucracy
Much info but
Information Individual PC Within department Begin integration KPI Dash Board
off f rom reality
High risk New system Loosing f lexibility
Reward Revenue driven Company performance based
High return Inconsistent Becomes “ Right”
Market Brand position Distance f rom customers
Repeat order Opportunity driven Pricing does not work
Customer Market driver or needs
Environment Growth & Control Form over substance
Hard work Everything is priority Stable & Exciting
Culture Power game Avoid risks
Management inf rastructure Losing entrepreneur
Management Founder decides everything Limited delegation Management accountability
in place Own protection
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-37
38. 10 karakteristika po Fazama
poslenik Opstanak /Zaposlen /Glas za promjene /Poboljšana
sposobnost /Samo-zaštita
adatak Osnivač je sve /Ravna struktura /po funkcijama
Vertikalna/horizontalna diferencijacija /Balans glavni uredi -profit
centri /Snažna zajednička uprava
kruženje Težak rad /Sve je veliki prioritet /Konflikt između kontrole i
razvoja /Tržni brend, dominacija moći /Formalizacija
enadžment Osnivač kontroliše sve /Limitirana delegacija moći
Stvaranje rukovodeće infrastrukture /Sistem procjene upravljanja
/Unutarnja poduzetnička kriza
ilj San protiv stvarnosti /Uvijek visok /Nema sporazuma/nema jasnih
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-38
ciljeva /ROI Korporativna vrijednost /Konzervativan
39. 10 Karakteristika po fazama
agrada Sve ili ništa /Svrstano s prodajama /Novi sistem
(nepostojanost) /Povezano sa realizacijom kompanije /Gubitak
fleksibilnosti
ržište Ponavljanje narudžbi /Energična obaveza /Politika cijene Novi
biznisi u kompaniji i M&A /Manje suočavanje kupca
ehnologija Istraživanje i razvoj /Ostatak proizvodnje
/Standardizacija /Obogaćenje portfolijo proizvoda /Nema mnogo
novih proizvoda
ovac Unutarnja invensticija /Kapitalna investicija /Popis i A/R Bogati
gotovinom /Visoki administrativni troškovi
nformacija Razdvojene
Transformation Professionals /Funkcijom /Početak integracije Upravljačka
08.12. 2009 Confidential/Proprietary Slide-39
Tabla /Šupljina između mgmt.informacija i stvarnosti
41. TEN ENTITIES
description analysis transformation
System Analysis
Svaki sistem se sastoji
od (entities)
Svaki dio ima svoju
karakteristiku(attributes)
Svi djelovi su povezani
(relationships).
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-41
42. TEN ENTITIES
description analysis transformation
task
Organization as a
management System
technology
svaka Organizacija se
money
employee O sastoji od 10 entities
market goal
Svaki entitet ima
environment
svoje attributes ARCU
information
reward Entiteti ostvaruju
posebne odnose.
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-42
43. TEN ENTITIES
description analysis transformation
Entities go through
SeiJuku Lifecycle
Rast zavisi od
promjena atributa
Zdravlje zavisi od
promjena u odnosima
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-43
44. Transformation Professionals TEN ENTITIES
description analysis transformation
Environment: economic, political, socio-cultural, geographical, and legal
forces from the company’s surrounding that influence the company
izvjesnost [A]
jasnoca [R]
kompleksnost [C]
sukobljavanje [U]
1. Formation 2. Expansion 3. Transition 4. SeiJuku 5. Saturation
Pod Uticajem Reakcije na Vazan Faktor Uticaji Racunaju na to
Promjenu
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-44
45. Transformation Professionals TEN ENTITIES
description analysis transformation
Market: all potential customers sharing a particular need who might be
willing and able to engage in exchange to satisfy that need
sluzenje [A]
odrzavanje [R]
razvijaju [C]
integrisu [U]
1. Formation 2. Expansion 3. Transition 4. SeiJuku 5. Saturation
Ubjedjuju Privlace Inoviraju Vozaju Zatvaraju
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-45
48. Transformation Professionals TEN ENTITIES
description analysis transformation
Goal: end result, achieved in some way, within some time frame, by
somebody
quantity [A]
quality [R]
novelty [C]
coherence [U]
1. Formation 2. Expansion 3. Transition 4. SeiJuku 5. Saturation
Founder’s goals Unrealistic Unit vs. organization goal Reconciled, balanced Conservative
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-48
49. Transformation Professionals TEN ENTITIES
description analysis transformation
Task: end result, achieved in some way, within some time frame, by
somebody
configuration [A]
control [R]
complexity [C]
coordination [U]
1. Formation 2. Expansion 3. Transition 4. SeiJuku 5. Saturation
Result Stretch Precise division Clear definition Over-documented
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-49
50. Transformation Professionals TEN ENTITIES
description analysis transformation
Management: end result, achieved in some way, within some time frame, by
somebody
accomplishing [A]
regulating [R]
creating [C]
uniting [U]
1. Formation 2. Expansion 3. Transition 4. SeiJuku 5. Saturation
Autocratic Ad-hoc delegation Competition, fight Creative monitoring Regulators
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-50
51. Transformation Professionals TEN ENTITIES
description analysis transformation
Employee: end result, achieved in some way, within some time frame, by
somebody
productivity [A]
compliance [R]
individuality [C]
synergy [U]
1. Formation 2. Expansion 3. Transition 4. SeiJuku 5. Saturation
Result Innovative In turfs Best company to work for Unfriendly cooperation
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-51
52. Transformation Professionals TEN ENTITIES
description analysis transformation
Reward: end result, achieved in some way, within some time frame, by
somebody
performance [A]
security [R]
profit sharing [C]
status [U]
1. Formation 2. Expansion 3. Transition 4. SeiJuku 5. Saturation
Per performance Sort-term bonus Based on profitability Myriad of rewards Based on “how”
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-52
53. Transformation Professionals TEN ENTITIES
description analysis transformation
Information: end result, achieved in some way, within some time frame, by
somebody
skupljanje [A]
organiziranje[R]
izvjestavanje [C]
tekuce [U]
1. Formation 2. Expansion 3. Transition 4. SeiJuku 5. Saturation
Technical Many, wrong Data, not information integrated Strong, dysfunctional
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-53
54. IIOSS Organization Model
Management (One of 10 entities)
Role of management
What management do
Iniciraju Akcije
Proizvode Rezultate
Market share
Vision
Growth Uspostave Kontrolu
Mission
Učinkovitost sa sistematičnom
Motivate Customer
satisfaction kontrolom
people
Risk mgt.
Quality Strateške puteve
Team building Vizija sa budućom mogućnošću
Profit Product
ROI development
Organizaciona Harmonija
Poželjna Kultura
Individual style
Detail IIOSS Management Style
orientation
Aggressive Accomplisher (A)
Conservative
Logical Regulator (R)
Action
Organic
orientation
Creative Creator (C)
Slow/Fast
Risk
taker Emotional
Uniter (U)
Strategic
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-54
55. Roles of Management & IIOSS Basic Style
Accomplisher Regulator Creator Uniter
Basic Style Realizator Regulator Kreator Ujedinitelj
[ A ] [ R ] [ C ] [ U ]
Realističan Visionarni Flexibilni
Predominantno Stalni Kontrolor
realizator Strateg Facilitator
iskustvo Analiza
Budućnost Vrijednosti
Preokupiran sa Akcija Proces Mogućnosti Kultura
Znanje Kontrola
Orijentisan na Akcija Sistem Kreacija Consensus
Fokusiran na Šta Kako Zašto Ko
Klasična Filozofija Voda Zemlja Vatra Zrak
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-55
56. IIOSS Management Styles Basic Relationship
Process Results
Flexible Global
U ( Who ) C ( Why )
Long
Term Air Fire
Short
R ( How ) A ( What )
Term Earth Water
Structure Local
Slow Fast
Efficiency Effectiveness
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-56
57. IIOSS Management Styles Profiler
Ovo nije mjerenje Dobar – Loš,
Ispravno – Pogrešno,
・ nego Mogu - Želim
U C
?
・ ovo nije indikator personalnog karaktera
već više, ovo je managersko ponašanje zasnovano
nasvakodnevnim poslovnim aktivnostima
R A ・ Važni determinirani faktori:
① Prvi 1st Dominantni stil
②Kombinacija 1st and 2nd dominatnog stila
③ Loš Mannagement style
- Dominatni stil gura previše
- Nedostatak jednog stila je značajno
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-57
58. IIOSS Management Styles Compatibility
How compatible each style makes?
C vs A,
U C A vs R,
R vs U,
U vs C,
R A
Yes or No
A R C U
Yes Yes Yes Maybe Maybe
No Yes Maybe No Maybe
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-58
59. IIOSS Management Style Model through Lifecycle
ominant (and sub-dominants) stilovi se mijenjaju tokom život.cikl.
aRu
aRcU
dealni Tim treba: ARCU ・ R ・・
Sve stilove sa različitim Dominantostima
U različitim fazama raličito ARcu
struktuirani timovi
ArCu
AC
aC
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-59
60. Test Marketing Result : MP
anagement Style / Mismanagement Style Distribution of 150 executives
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-60
62. Harmonization Model
description analysis transformation
Harmonization Consulting
In-depth diagnosis by
entities
Mission, structure,
culture, and accountability
system.
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-62
63. Transformation Professionals MISSION FOR GLOBAL COMPANIES
Misija: Šta će Organizacija da radi, U kom pravcu će da se kreće ?
U kom smo mi biznisu, šta radimo?
Da li smo na pravom polju ?
Možemo li remodulirati posao kao odgovor na promjene?
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-63
64. MISSION FOR GLOBAL COMPANIES
ENTITIES for MISSION
1.Okruzenje
2.Trzište
3.Technology
4.Novac
5.Ciljevi
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-64
65. Harmonization Model - Mission
Misija: Šta će organizacija daradi, glavni pravac kuda će da ide
Jasnoća Pravca: Gdje se Kompanija uputila,
dugoročna orijentacija
Akciona/Svrsishodna: Da li je Misija / Vizija
podržana pojedinim akcijama, da li su
angažovani ljudi da prošire te aktivnosti
Izazovna vs. realistična: Da li kompanija pravi
planove na realnoj osnovi, kako su kreativnost i
inovacije podržane u Misiji i Viziji
Slaganje: Da li svako zna Misiju i Viziju
kompanije i da li svako stoji iza njih
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-65
66. Structure FOR GLOBAL COMPANIES
ENTITIES for Structure:
1.Ciljevi
2.Zadatci
3.Management
4.Uposlenici
Transformation Professionals
08.12. 2009 Confidential/Proprietary Slide-66
67. Harmonization Model - Structure
Organization Structure: Rezultat odnosa izmedju svih entiteta
Konfiguracija and centralization vs.
decentralization
Coordination, control, and formalization:
Dostići zajedničke ciljeve, aktivnosti moraju biti
koordinisane
Kompleksnost: ona definiše dubinu i
disperziju organizacione konfiguracije. To je
stepen horizontal, vertical, and spatial
differentiation.
Podstrekač: To je način na koje se osobe i
njihove aktivnosti u organizaciji ocjenjuju i
konpenziraju
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68. Culture FOR GLOBAL COMPANIES
ENTITIES for
Organisation Culture:
1.Management
2.Uposlenici
3.Nagradjivanje
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69. Harmonization Model - Culture
Culture: način na koji ljudi misle o pojedinim stvarima kao što su
dostignuće, blagostanje i materijalna dobit, rizik, i uticaj promjena te
kako pristupaju poslu i njihove relacije prema organizaciji.
■ Rizik/Izbjegavanje neizvjesnosti: je kulturna
tendencija prema neugodnostima sa rizikom i
neizvjesnošću.
■ Individualism vs collectivism: To je tendencija
kulture da naglasi individualni kontra
organizational (company’s) interes
■ Motivacija: je relativno stabilan nivo
entuzijazma za dostizanje organizacionih
ciljeva
■ Internal vs external focus: nivo energije u
organizaciji je nekako limitirana i ona se može
trošiti ili externally (u radu na tržištu) ili
internally (u radu sa samim sobom).
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70. Accountability FOR GLOBAL
COMPANIES
ENTITIES for
Accountability
SVIH 10 entiteta
(Karakteristika) ali
poseban osvrt na:
1. Informacije
2. Nagradjivanje
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71. Harmonization Model - Accountability
Accountability: Koji rezultati se očekuju da će osoba isporučiti za
postavljeni zadatak
Definicija Rezultata: Organizacija treba da
definiše rezultate koji se očekuju od nekoga
Jasnoća Zadatka:Organizacija treba da je
sigurna da je dodjeljeni zadatak jasan onome
koji treba da ga obavi
Sposobnost: Organizacija je accountable ako
ljudi koji dobijaju zadatak su spossobni da
izvedu taj zadatak
Nagradjivanje: Organizacija je accountable
ako ljudi koji dobiju neki zadatak znaju
unaprijed koju nagradu ili kaznu dobiju ako
izvedu ili neizvedu taj zadatak
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74. BENEFITI ZA KOMPANIJU
a brz,efikasan i cijenovno prihvatljiv način utvrdjivanje
faze životnog ciklusa i stanja zdravlja Kompanije
a brz,efikasan i cijenovno prihvatljiv način utvrdjivanje
individualnog stila managera i njihova kompatibilnost u
management timu
tvrdjivanje da li manageri odgovaraju svom poslu i
radnom mjestu (Job Map) i potrebe njihovog razvoja
tvrdjivanje mjera i akcija za poboljšanja rada Kompanije
na putu ka TOP Formi
ransformacija Kompanije u radu sa certificiranim IIOSS
Transformation Professionals
konsultantima i domaćim vrhunskim profesionalcima
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75. PITANJA I DISKUSIJA
PITANJA ? ODGOVORI !
DISKUSIJA
ZAKLJUČCI
PREPORUKE
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Our Vision People and the way how they are organized, is at the heart of any business. Thus, having healthy people is a prerequisite for a business in harmony. We believe that every business can achieve and sustain an optimal internal and external harmonization, or how we call it, SeiJuku level. Based on this belief, our vision is to become a global supplier of tools and services for business harmonization in every language. Our Mission We are in the business of designing, developing, and providing tools and transformation services for harmonization of businesses in order for them to become global. The tools are based on questionnaires, standard interviews, and observations. The tools are aimed to diagnose the overall age and health of businesses and the age and health of specific parts within a particular business. The transformation services are based on our own theory of business in harmony and the services are aimed to cure disharmonies, bring and sustain the clients at SeiJuku level. As a leader in developing, applying, and transferring a new concept to the area of business consulting, our mission is to be a preferred partner for business consultants worldwide. We achieve our mission by developing and licensing tools and processes for work with the end users in different languages. Our partners are: • “ language heads,” people responsible for all our activities in some specific language; and • experts in different business areas (by entities), one exclusive expert per entity in one language. To implement our mission, we nourish a culture that encourages our partners’ full involvement and optimum flexibility in improving our offering. We develop collaboration within the global network based on centralization in development (sharing the costs) and decentralization in delivery (enjoying the fruits of good work).
Genesis of IIOSS Models The purpose of every company is to achieve and sustain its peak performance. Transforming the companies towards that peak is the main goal of every manager. The consultants can help in achieving that goal. In doing so, they use different models of change. Three questions are of importance in applying those models: How the companies grow and develop and what is happening at different stages of their development? Or, which Growth Model to use in predicting the future development of the organizations. What is a company, what is its anatomy and physiology? Or, which organization model to use in explaining the organizations. How to treat companies in a “tailored way,” having their age in mind? Or, how to make the Transformation Process towards the peak performance unique, since every organization is unique. In addressing these questions, we at IIOSS have used well-known models and approaches. As a result of more than 20 years of presence at the business consulting and executive arenas, we have found more than 10,000 symptoms that tell us a lot about: how the organizations grow and develop, how the organizations are organized, and what is needed for the organizations to change in order to achieve and sustain their peak performance. The problem was how to organize all our findings using the existing models of organization, growth, and change. We found ourselves in the following situation: we can have the best engine in the world, the best chassis in the world, and the best control (driving) system but we cannot make the best car in the world because these three components do not fit to each other! Our conclusion was that we have to design all three components simultaneously, under one roof, using one technology, and the same resources. That is why we have developed our own Theory of Business.
Global Company The world used to be a holistic, almost a single market place accessible to everyone. Not anymore. The global economic crisis necessarily produces local protectionism. The countries raise import-barriers on their borders in order to encourage domestic economy. The biggest losers from those measures are the global companies. So, what is the recipe for staying or becoming a new global player? Our answer is: redefining the whole philosophy of the global companies. Think global, act local! This is a very famous statement, originally coined by the environmentalists and widely accepted by most of the businesses. It used to seem so obvious and so true. Not anymore. The conditions have changed and the new realities require different approach to the global market. Our goal is to prove that the road for becoming global, starts on the local level. Our goal is to prove that the statement from the beginning of this paragraph should be rephrased as: Think local, act global . How does a new global player look like? It is not enough to have your products sold to different countries - you will be an exporter only. It is not enough to buy from different countries - it makes you an importer. It is not enough to have offices or representatives in different countries - it makes you a geographically dispersed company. It is not enough to have parts of your products made in different countries - it makes you a company which utilizes on outsourcing. It is not enough to have you well promoted in different countries - it makes you an aggressive company. It is not enough to be recognizable in more countries - it makes you a brand name. In all before mentioned cases, you will be faced with the local protectionism and will suffer from that. It takes a total transformation to stay or become a global company. What used to be a successful formula for making business at the global scale, is not anymore. It is the time when the existing global companies and those who intend to become global, have to go back, local, and take the necessary actions to redefine their business from inside to outside. It is the time to re-think the global goals, to redesign the global job division, to reassign the global jobs, and to globally support achieving those goals. In one word, the companies should go back inside in order to achieve their full internal accountability and then, go outside and replicate that model globally. This is not a magic formula but a long and painful process consisting of three steps: description, analysis, and transformation: the company should be re-described as a global player and re-analyzed in depth what should be happening in a global company; based on that, a prescription for transforming into a global company should be derived. This presentation is organized by having in mind this three-step process.
IIOSS Theory of Business We use an integrated and holistic approach to modern business, that gives answers to the following questions: • why businesses rise, develop, and eventually decline; • what is happening inside the businesses, while they succeed or fail; • how businesses reach and sustain their premium conditions. In order to answer these questions, we need three different models: • Lifecycle Model, • Organization Model, and • Transformation Model. All three models comprise a totality called IIOSS Theory of Business.
Lifecycle Model The first attempts to apply the rules and logic of the nature in the business are dated way back in the history. A business, although being primarily a social system, many times shows characteristics of pure natural systems. A reason more for this is given by the fact that the people are the most important part of the businesses. Since people are natural systems by definition, some of the realities pertaining to them can be applied to the business. One of those realities is the lifecycle: people are born, they grow and develop and, finally they die. It is the same with the animals and with the plants. Why not to apply this concept to the businesses, too? Many authors have done it in the second part of the 20th century. Some with more, some with less success. The masterwork was done by Larry E. Greiner in the article “Patterns of Organizational Change,” (1979) in which he proposed five stages of growth with their specific evolution and revolution forces. Subsequently, many authors contributed their thoughts about this subject. In 1980, J. Kimberly and R. Miles organized the main achievements in their book “Organizational Lifecycles”. A significant work was done by I. Adizes, too. Even now, forty years after these pioneering works, we still find the concept of business or organizational lifecycles still valuable. In developing the SeiJuku Lifecycle Model, which is the basis for our descriptive part, we were led by the following principles: • Every business passes through different developmental phases. • The business shows repetitive and somewhat predictable patterns of behavior. • The advancement on the lifecycle path is exhausting - there is a kabe (wall) between the phases. • The business can be healthy (green), in decline (yellow), or in danger of dying (red) at any point on the lifecycle path.
Basic Characteristics of Prenatal Period There are many reasons behind starting a business. These reasons can be grouped into two broad categories: psychological and economic. Whatever reason is behind starting a business, one thing is for sure: there is a lot of happening before a company actually is born. The founder, where the word “founder” includes all possible types of founders, usually does the following things in the prenatal period: - recognizes some market needs and has ideas how to meet those needs, - knows how to “productize” the idea in a structured way, - at the right time, is ready to take the risk of opening a company, - has capabilities to obtain the support of relevant people/institutions. The founder’s intentions are usually presented by a document called “business plan.” In reality, the sequence of the above mentioned activities can vary a lot. Sometimes, everything starts with finding “appropriate people,” sometimes with a finalized and productized idea. Obviously, there is no formula or only one proven way of founding a company. As the founders progress through the prenatal period, wall by wall appears on their road. Within the last 15 years, the authors have heard many stories about founding companies. In some cases, the money was not the problem but finding good people was a huge difficulty. Or, in some others, finding good product/service or market was the biggest problem in those prenatal days. Whatever happens in the prenatal period, it can be summarized as: a daylight dreaming and visualizing a future company that can meet the market needs by taking risk and making the idea work. Who dreams, who visualizes, who takes risk, who convinces people, who makes everything work? The founders, of course. What kind of people are the founders and what differentiates them from the rest of the population? All these questions are addressed in part two of this book, when the authors talk about what is happening in the separate components of the business during the SeiJuku lifecycle.
First Kabe: Setting up Right Expectations The real challenge for the founders is to set up appropriate expectations during the prenatal period: as the expectations increase, it should be supported by a proportionate dedication. Otherwise, everything will remain just a wishful thinking. The founders should be prepared for the worst possible development in the prenatal period and hence, allocate enough resources to give a healthy birth to the new company. The other dangerous point while approaching the first kabe is giving away the ownership over parts of the company that is actually not born yet: many founders can easily give away portions of the ownership believing that it will attract the necessary people to the company. Later on, they will probably regret those decisions. Many people are able and willing to think of opening their own business but not too many are ready to do the final call and make it happen. The formula for success in defining the market niche, productization of the idea, finding people, facility, technology and money is not going to work once the business starts. It takes a completely new approach, actually it takes a new personality to give birth to the business.
Basic Characteristics of Phase 1, Formation Whatever way the business was born, there is only one way to keep it alive: do the job and get results! There are four driving forces for the businesses at Formation: support, operations, management style, and deadlines. The first driving force for the business in Formation is the support from those who founded the business. In order to survive, the business in Formation needs a lot of dedication from everyone involved: the founders, the employees, the environment, including the family members. In reality, the situation is different: nobody feels the same obligations towards the business as the founder does. For the employees, it is a source of existence, for the family members it is a possible source for a better living (usually, a possibility to spend more), for the society it is a source of employment. But no one from the list above perceives the business as their own destiny. That is reserved for the founders only. The founders perceive the business as their lives, they feel every single vibration in the business, and they go through the same pain as the business does. Simply, the business is part of them. The second driving force is the operation-orientation. Although the founders believed they “have the product/service,” as soon as the business starts, many issues in this area arise. They see that the idea is not yet productized to its full extent, the supporting technology is not developed enough to provide a mass production/delivery, the maintenance system cannot follow all failures that happen in operations. Altogether, these factors suck all the internal energy. That is why there is no time to develop systems, rules, or procedures and that is why the business performs inconsistently. There is no spare energy for dreaming or visioning or creativity, either: it is the time when the original idea for starting a company should be materialized, not to reconsider that idea. The third driving force is the management style. There is no time for discussions, no room for democracy - everyone is united around the founder and around the survival of the newly born organization. As a consequence, even small problems can become crises. The company deploys a simple and effective chain of command. There are no intermediate commanders, only one direct line from top to down. And there is no down to top channel, it is closed for the time being. It is a rude battle for survival and there is no time for democracy or authority delegation. The fourth driving force is chasing deadlines to meet the client demands – the company has to do whatever it takes to meet those deadlines. This requires long hours, working during weekends and holidays. In doing so, some businesses can become “prisoners of clients,” bending over to satisfy all clients’ needs, waiting in stand-by positions for every desire coming from the clients.
Second Kabe: Getting Out of the Client’s “Bear Hug” Since the company at Formation is new to the jungle called market, it can be easily caught by clients. Chasing the cash necessary to survive, often throws the new company at the clients’ bear hug: it is warm and safe but is difficult to breath! It takes bravery and dignity to say “no more, I am going out, in chasing some other opportunities.” Some businesses are able to get out of this trap, but many remain prisoners of clients for a very long time, get old doing the same, or even die in that prison.
Basic Characteristics of Phase 2, Expansion When the production gets stabilized, the clients’ needs are somewhat satisfied, the cash flow is yet negative but under control - the organization moves to Expansion. What is on the organization’s agenda now? It is a completely different setting around the organization - new league, with new players and new rules. There are three driving forces for a business at Expansion: chasing opportunities, portfolio enhancement, and internal restructuring. Chasing Opportunities : The worst is past - there is no more doubts that the company can and will survive. The company has proved that it can both produce and deliver products and services needed by the market. That opens many clients’ doors. The company starts building it “endorsement book”: it is a collection of testimonials about the quality of products/services and reliability in delivering those products or services. Please note these two words: quality and reliability. What was the biggest problem during Formation, now becomes an advantage. It is like with the children- since they’ve been frequently told the phrase “you can do that when you grow up,” they are so motivated for getting and presenting proofs that they are already grown. The companies use all kinds of proofs to show that they are already grown - diplomas, certificates, newspaper articles written about them, or framed client testimonials to prove that. We’ve seen many founders that keep these collections on very special spots at their offices. Replicas or copies of those proofs are used in promotional purposes. And it works: the market starts believing in the company more and more. That makes easy for a company at Expansion to get new clients. The by-product of chasing opportunities is that the business leaders (the founders) feel like they are almighty: they can do whatever, whenever, wherever, and with whomever they want. Portfolio Enhancement : Getting out of the clients’ bear-hug opens the company’s eyes and they see that there is so much out there that hasn’t been in their focus during the tough times of Formation: there are market needs that the company can satisfy using the same or slightly modified human and material resources; and there are clients who buy some products or services from the company and need some other products or services. Both perceptions breed courage to enhance the company’s existing portfolio. Many companies succeed in this. Especially those who are wise enough to capitalize on their knowledge and experience gained during Formation, without experimenting in totally new areas. The by-product of enhancing the portfolio is that the business frequently changes its direction: the whole production process will be changed if required to produce new products and the whole delivery chain will be modified to support it. Internal Restructuring : In order to make possible the intense growth and development, the company is required to organize itself differently than it was at Formation. Within the “commerce” department, two separate functions slowly depicts: marketing vs. sales. Within “production,” we eventually see product development, manufacturing, and maintenance slowly separating from each other. Finance takes apart from accounting, and human resource development is getting away from the pure human resource administration. All these emerging functions can be easily described as separate centers and the company tries to trace their contributions and costs. These are the first signs of tightening the control company-wide. The by-product of the internal re-structuring is the phenomenon called “re-centralization” and it is related to the way how the company’s leaders (the founders) delegate their authority.
Third Kabe: Saying “No” to Opportunities This is the time when the company should take a break: it has successfully climbed many hills and it has won many battles on the market place. The consequences are visible - many scares and wounds. It is the time to heal those wounds before the company starts climbing to the top of the mountain. What does this mean? The company has become a champion on the local market. It has many clients and it is easy to get new ones. The sales goes well, the market share is growing, the profit margins are steadily increasing. The price paid for this success is high: the company is overstretched and the first signs of tiredness are visible everywhere in the company. People and other resources are almost exhausted from being all over the place. The lack of systematization was compensated by working more; the failures from all kinds of overlaps were covered by working even more; the lack of managerial experience was adjusted by pushing to the limits! And there is a limit for everything. It is the time for the first serious company’s retreat. Not for celebrating the results but for preparing the company to enter the higher league. It is the time when the founders, who are usually the most exhausted resource, should start thinking of their future - how they see the company and how they see themselves. It is the time for the transitional management to start preparing themselves for taking much bigger responsibility for the company’s future. It is the time for the employees to prepare themselves for a different development - some of them will have to leave the company if they cannot catch up with the new requirements.
General Characteristics of Phase 3, Transition This is the point where many companies fail to assure their tomorrow by taking unreasonable actions today. This is the point where the founders empower or disable the future advancement of the organization. The Transition actually is a battle between the founder/owner and the transitional management for gaining control over the organization. An organization in Expansion is characterized by arrogance, uncontrollably fast growth, centralized decision-making, and a lack of systems, budgets, policies, and structure. These are all preconditions for crisis and that’s usually what provokes a request for transition to a different kind of organization. Up to that point, it’s very difficult to make the transition because the leaders of companies at Expansion are considered to be geniuses, they made his company grow tremendously every year. And then, all at once, from being geniuses, they turn into unguided missiles; from being company’s asset, to becoming a liability. The Founder-s : There is a widely accepted myth in the western world that organizations can suffer from so called Founder’s disease, syndrome, trap. All these names refer to the same phenomenon: an outdated and counter-productive behavior of the founder. After Formation and Expansion, the organization eventually evolves faster than its founder can follow and support. This creates conflicts and power struggles throughout the organization that can prevent the company’s growth or even kill the company. The generally accepted recipe for avoiding or curing this phenomenon is to put systems in place, make a transition with hiring professional managers, and remove the Founders from the organization. There are three essential differences between our model and others: (a) there is no such a thing as founder’s trap - the company can equally benefit or suffer from the Founder’s influence at any phase of the lifecycle, (b) the Founders shouldn’t be removed from the company, and (c) the founders should grow together with the company by going through the same five lifecycle phases. The Transition phase actually is a radical change in the founders’ behavior: from being geniuses for market and production, the founders should become geniuses in business administration. It should be their choice to do something today in order to assure the tomorrow of the company. Thus, there are several patterns available for founders to take: change from marketing geniuses to total business management; leaving the existing business and looking for other strategic opportunities; quitting from day-to-day operations and focusing on activities of the Board of Directors; quitting from daily business and becoming a company’s statesman; retiring, but first empowering the next generation of managers.
Fourth Kabe: From Conflict to Harmony Climbing the fourth kabe means stopping the battle, seizing the fire and signing a peace treaty. This means to change the focus from balkanizing to uniting, from producing small kingdoms to producing a king-size company. In doing so, the company should try to enlarge the cake so there will be a good piece for everyone.
General Characteristics of Phase 4, SeiJuku So far, the organization has made a tremendous progress and has reached the throne. However, making progress is obviously less difficult than to preserve that progress, reaching the throne is easier than staying there. The organization should make continuous changes in all entities in order to stay at its premium level of performance. The champions, in order to remain so, should put much more efforts than they have put in earning the championships. Being on the top means having a lot of rivals interested in taking over the throne. The organization in SeiJuku is more professional and less intuitive in decision-making. It is opportunity-driving, rather than opportunity-driven. The emphasis necessarily switches to systems, policies, and administration and that requires a totally different set of skills. The company does not need someone like the founder. It needs an administrator. The organization is emancipated from the founder’s style of management – the authority is fully decentralized, the governance function is institutionalized. The flexibility no longer may take precedence over control. The functions within the organizations are well defined and that makes easier to recruit skilled outsiders. This staffing phase of the development has its own problems. The leaders from the previous phases have loyalties to the employees who were with them through the tough times. There are all kinds of written and unwritten commitments and coalitions. Even to think about violating any of those codes, creates an emotional episode.
Fifth Kabe: From Stars to Dust The fifth kabe means beginning of decline and the idea is to learn how to avoid this kabe. You have probably seen many sport champions going to dust after they have reached the stars. After so many sacrifices to reach the throne, the companies can easily lose their breath, decrease their ambitions, and become self-satisfied with what was achieved. That is a crisis-in-waiting. Unfortunately, the signs of that crisis are not easy to recognize: as the company was growing and advancing toward SeiJuku, it was developing a whole system for measuring the success - amount of sales, growth rate, market share, profitability, return on investment, healthy balance sheet, earning per share - all these indicators were used to describe the success. The decline was not in their dictionary. Now, being at SeiJuku, the company simply does not know how to interpret and react to some undesired changes. It still uses “negative growth” to name a simple decline. Losing some battle, shrinking the market share, decrease in profitability - all these are described in “lack of success” terms. One of the many signs of decline that is not visible in any financial ratio, is the silence - management and employees in meetings and corridors talk less and avoid mutual communication whenever it is possible. Tough decisions are made without too much discussion. Another sign is lack of conflict - tough decisions are made almost anonymously, by consensus. People are not willing to confront for the sake of good decision; what they want is to keep the things still.
Basic Characteristics of Phase 5, Saturation After being for a while in the Seijuku phase, the company can easily slide into saturation and declining. There is only one reason for that: organizational fatigue . The first manifestation of the organizational fatigue is the sense of self-satisfaction of the company in Seijuku: both management and employees feel that they have reached the pick of their performance and there is nothing more that can be done. The “daily exercises” that was a routine while in Seijuku, becomes a weekly exercise and then monthly and, at some point in time, the company stops exercising. The company is still aware of the need of doing those exercises. If they miss the daily routine, they try to catch-up with a concentrated exercise once in a while (annual outdoor management retreat). The second manifestation of organizational fatigue is the vision for the future progress and advancement: up to Seijuku, the company’s vision was to rely on its own capabilities in growing more than relying on the environment. The company was an environment-driver rather than environment driven. Up to Seijuku, the higher consumption power of the environment was perceived as a source of advancement and the company was trying to increase that consumption power through providing better, cheaper, more reliable products/services. The third manifestation of the organizational fatigue is so called “big company syndrome.” The company in Saturation perceives itself as a big player on the market, somebody who is very important to the environment, sometimes even important to the government. This perception causes the company to slow down its progress – we are big and our partners can wait for us. That causes losing the sense of urgency in developing and delivering the products/services which was a characteristic in the previous phases. The fourth manifestation of the organizational fatigue is the power shift: in the previous phases, the power was located in those who make the business – the profit centers. Now, in Saturation, the power slowly transfers to those who control the business – the Headquarters. The slide into Saturation is soft, no dramatic and obvious changes. The organization experiences no major transitional events as it did when moving from one stage of growth to the next. From SeiJuku on, movement along the SeiJuku cycle is a process of decline. When organizations grow, they reach noticeable transition points. When organizations decline, however, it is a continuous process of incremental rotting and decay, from green to red without distinct transition points.
Basic Characteristics of After Termination Period The decline usually means inquisition and beheading the creativity and progress. It additionally means feudalization and federalization into small spheres of influence where “eye for eye” syndrome and all kinds of personal vendetas are present. The company might end up with an artificial life support, where the environment (usually the government) takes care of the company. The company can undergo some legal transformation but basically will still continue to operate. In this case, we talk about termination. In some cases, the company can really die. The people go their own ways, the assets go under legal liquidation. That is real death.
Green: Age-appropriate Symptoms To Green Formation : revisit and clean up established policies; make them simple so everybody can understand and make them easy to monitor whether they’ve been followed or not; introduce hard rules in operations so that the amount of errors will be minimized; small delegation of founder’s authority will free up some entrepreneurial energy so needed for company’s revitalization; start monitoring cash flow, accounts receivable and accounts payable on a daily basis; introduce “managing by inspection, not by expectations” - clear instructions followed by a close monitoring process on an hourly basis. To Green Expansion : make a list of 10 things the company shouldn’t do under any circumstances; announce it as a company bylaw, or Company’s Constitution; introduce rewards based on profits, not based on amount of sales; define “constraint” goals: what cannot be violated while achieving a goal, in example: annual growth of 18% with profit margin no less than 23%; increase the bonuses for retaining customers, decrease the bonuses for getting new customers; note to the founders: start thinking of a succession plan. To Green Transition : the founders, if still in the company, have to make their choice here: are they quitting or staying; it is good to have the founders around, at least sitting in the board but if they decide to leave, they should do it now; a clear founders’ decision about their future will help is stopping the battles and healing the company’s wounds; get the clients back in the company’s focus; revise the company’s mission according to new realities; decentralize the company with clear accountability. To Green SeiJuku : challenge and expand the goals of the profit centers; achieving those goals will require extension of creativity, innovation, and cooperation company-wide; restructure the company by empowering the profit centers for the sake of the headquarters; profit centers might feel overconfident - challenge the transfer prices between them; increase competition by adding outsourced providers; introduce a continuous education for the next generation of managers. To Green Saturation : Not skin-lifting, infusions, or amputations but whole-organization body and mind treatment: deep diagnosis of all organizational entities, their attributes and relationships; reducing control for the sake of creativity; allowing risk and mistakes for the sake of security enabled by “doing nothing”; looking for inner energy; act more, think less.
Yellow: Age-inappropriate, Not Life-threatening Symptoms Yellow Formation : premature introduction of rules, systems, and policies; more and more doubts in company’s survival are rising; sales before everything, at any price, often underpriced without even knowing it; bending over the clients’ needs; the main company’s customer is the founder himself: most of the energy is spent on “selling” the ideas to him. Yellow Expansion : too many priorities; the policies and rules are perceived as recommendations only (Chinese Traffic Lights syndrome); working harder instead of smarter, sales instead of profits; easy to get new clients, difficult to keep the existing ones; the founder still indispensable in developmental areas (Marketing, R&D, Finance). Yellow Transition : gaining power over the company is the first priority, clients’ needs come later; everyone turns into a politician, the offices turn into parliaments; traps everywhere, easy to get caught in; mass production of information, black-white-grey propaganda; the founder in dilemma: to whom to believe? Yellow SeiJuku : overconfidence, almighty, supremacy; WYSIWYG (What You See Is What You Get) management dashboard but with some false premises; incoming battle between headquarters and profit centers; management education taking the backseat; “why rush, we are designated winners anyway” syndrome; the portion of revenue coming from new products/services is decreasing. Yellow Saturation : no innovations, no entrepreneurship, no risk; control for the sake of control; focus on yesterday, “those were the days” syndrome; using “negative growth” instead of “decline” language and measures; confusion over the vision and mission; more time home, less time out.
Red: Age-inappropriate, Life-threatening Symptoms Red Formation : total absence of rules, systems, and policies; the founder has lost his passion and excitement; no sales but product orientation only; fulfilling the clients’ wishes becomes too expensive; attention only to the founder’s needs; there is no product that the market needs but what the founder wants. Red Expansion : “The Hungry Donkey-Dilemma” going back and forth between two haystacks, starving to death; the company suffers from “Machiavelli syndrome”: the ends justify the means; everyone works hard but in different worlds, no common goal; every day gaining two new clients but losing three of the existing clients; the founder in lethargy, ready to give up and sell the company. Red Transition : clients forgotten, all energy goes to internal fights; the scapegoat is called “results, systems, creativity, unification” or, “the business”; his majesty THE GOSSIP manages the organization! the founder cannot take it anymore and abdicates. Red SeiJuku : no more exercising, or just some “seasonal” or “annual” exercises (during annual meetings); not hungry for new victories; too much silence throughout the organization; “cold comfort” instead of “hot seat” philosophy; losing the spirit of creativity, innovation, and enthusiasm for change that brought the company to SeiJuku. Red Saturation : open fight for personal survival; total internal focus; lots of unhealthy alliances within the organization; no production, no results; waiting for somebody outside to take care of the organization; just infusions, not therapy.
Behavior of the Organization The red of the previous phase is the same style-code with the green of the next phase: the difference is one of a degree. It is easy to get confused and mis-diagnose.
System Theory and IIOSS Organization Model Our Organization Model was greatly influenced by the system theory and its adaptation by the relational databases. L. Von Bertalannfy introduced the General System Theory (1950) and after its introduction, this theory has been applied in many fields. E. Codd introduced the Relational Model of Databases and it has been applied by almost each of the modern databases. Let us use here an analogy from the nature: a one-day old baby has the same parts of the body and organs as a 50-year adult: head, arms, legs, etc. The growth of humans is not characterized by adding new organs - the humans die with the same organs they had been born with. The growth of humans is characterized by changes in their capabilities to successfully do different things, in their consistency in doing the things well, in their creativity to cope with new things and situations, and finally in their cooperation with more and different people. Based on the system theory, the human body consists of many parts that have their own characteristics and all those parts establish a myriad of mutual connections. We call the parts “entities,” their characteristics we call “attributes,” and the connections we call “relationships.”
IIOSS Organization Model We define the business as a sum of entities, the entities have their attributes, and the entities establish many relationships between them. This is the anatomy and physiology of the business. Roughly speaking, an entity is a group of things that all look more or less alike. In other words, we have many instances of an entity and we have the same kind of information about each one. Attributes, on the other hand, refer to the kinds of characteristics we have about each entity. It is important to understand that each attribute is a constitutive segment (characteristic) of one entity that can be compared to the same attribute of another entity. Finally, the entities are in many relationships between each other. In order to understand the business as a system, we must first understand the terms entity, attribute, and relationships since that is the anatomy and physiology of the business. Roughly speaking, an entity is a group of things that all look more or less alike. In other words, we have many instances of an entity and we have the same kind of information about each one. Attributes, on the other hand, refer to the kinds of characteristics we have about each entity. It is important to understand that each attribute is a constitutive segment (characteristic) of one entity that can be compared to the same attribute of another entity. Finally, the entities are in many relationships between each other. We have found that any business in the world - in any industry, of any size, of any nature – consists of ten entities: environment, market, technology, money, goal, task, management, employee, reward, and information. The organization model is based on four principles: • Every business has a limited number of entities. • The business shows repetitive and somewhat predictable list of attributes. • Changes in attributes are the reason for business to grow or decline. • Changes in relationships are the reason for business to be healthy or sick.
Growth and Health The difference between the simplest business and a conglomerate is in the size of attributes by entity, and the number and complexity of the relationships between the entities. Let us use here an analogy from the nature: a one-day old baby has the same parts of the body and organs as a 50-year old adult: head, arms, legs, etc. The growth of humans is not characterized by adding new organs - the humans die with the same organs they had been born with. The growth of humans is characterized by changes in their capabilities to successfully do different things, in their consistency in doing the things well, in their creativity to cope with new things and situations, and finally in their cooperation with more and different people. In other words, the list of entities of the system called “human body” stays the same; what is changing is the attributes of those entities and the relationships the entities establish. It is the same with the businesses: every business is born and eventually will die with the same number of entities. Growing the business means adding more attributes and improving the relationships.
Entity Environment Over SeiJuku Lifecycle We define the environment as “forces in the company’s surrounding from economic, political, socio-cultural, geographical, legal, and that influence the company.” We have found that every environment can be (a) described, and (b) companies can be compared to each other by using four attributes: certainty, clarity, complexity, and conflicteness. Certainty means how well we treat the existing customers at the present time; clarity means our success in making our customers repetitively buy our products/services; complexity means how successfully we gain new customers; conflicteness means how successfully we integrate our efforts in this entity. The level of development of these four attributes indicates the age of the entity environment. Based on that, the businesses can act as: Formation, Expansion, Transition, SeiJuku, or Saturation. The future founders usually consider the factors from their surrounding: economic, political, socio-cultural, legal, physical, and technological segments. They include their findings in the business plans. The environment at Formation is pretty uncertain and the company is under a strong influence of the environment. Even a small change in the environment may cause big problems within the company. As the company moves to Expansion, it learns how to react to changes in the environment in a more effective way. The outside changes become more clear to the company and sometimes the company can even predict some of those changes and prepare itself in advance. Being more present in the environment, gives an opportunity to the company to be closer to the information sources. On the other hand, by growing the company gains more respect and confidence from the environment. The company at Transition is already an important factor in the environment: large employer, contributor to the local gross product, initiator of change in buying habits, influential in the social sphere, with big impact on the physical surrounding. All this makes the company very important for its environment. Being important means getting more friends and supporters in the environment, but simultaneously the number of those who are not happy with the company is raising, too. Just the opposite from a company at Formation, a company at SeiJuku is influencing the environment. Being at SeiJuku means being really an indispensable factor to the environment - local, regional, national, and international. Many changes in those environments are dictated by the moves the company makes. Small change within the company can cause a lot of changes in the environment. All segments in the environment are under huge influence of companies at Saturation. The companies at Saturation are part of the governments agendas! The company leaders are very influential in the society. We’ve seen many cases when those leaders can even cause change of ministers and prime ministers. Those leaders are either major donors to some of the political parties or are significant members of those parties. Very often, whole elections may be built around those companies.
Entity Market Over SeiJuku Lifecycle The widely accepted definition of the term “market” is: a market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want. So, two things are in the focus of this definition: customers and their needs. We have found that four attributes are sufficient to describe the entity market: serving, means how well we treat the existing customers at the present time; maintaining, means our success in making our customers repetitively buy our products/services; developing, means how successfully we gain new customers; integrating, means how successfully we integrate our efforts in this entity. At Prenatal, the future founders of a business have an idea of some market needs that are not successfully met and they see an opportunity for them to open a business that will meet those needs. The focus at Formation is to how to convince the potential customers in the quality of our product or service. So, there is neither time nor knowledge for some serious market efforts. The market consists of several customers and their needs are the driving force for the company in Formation. In order to keep the existing and attract new customers, the company at Expansion comes with a palette of all kinds of add-ons to their products and services. Focus is on making the company different from the competition by adding value to their existing products and services. As soon as the competition starts doing similar things in attracting new customers, the approach from the previous phase becomes obsolete. The alternative is to keep doing continuous innovations. That takes a lot of investments and, frequently, the return on those investments is poor. The company is forced to find a new basis for competition. That is why the company explores its opportunities and position itself on the market. Since it is relatively easy to copy products/services, the competitors can follow the same pattern in differentiating themselves. What is needed at SeiJuku is to keep staying different, which is much more difficult than to become different. Remaining the identity takes a continuous market analysis, planning, implementation, and control. The company becomes a market-driver. Planning and control can easily become starting and ending points of the entity market. Everything in-between these two points loses its importance. That is a typical Saturation: the company becomes a master in planning and controlling, losing the vitality that comes with analysis and implementation.
Entity Technology Over SeiJuku Lifecycle When we say “technology” we do not necessarily mean operations or manufacturing, although many times there is an equal sign between these terms. We rather use the term “technology” to describe the equipment, techniques, and processes required to transform inputs into outputs. Four attributes are sufficient to explain every technology: batching, standardizing, tailoring, and connecting. These four attributes can successfully explain production (manufacturing), service, retail, and wholesale companies. Batching means the capability of the applied technology to enable mass production of products and services; standardization means how systematic and standardized is the process of turning inputs into outputs; tailoring means how flexible is the technology applied to change the way of turning inputs into outputs; connectedness means how successfully the processes are integrated within the company. During the prenatal period, the founders have several choices regarding the technology: to develop new product/service using new technology, to develop a completely new product/service utilizing some of the known technologies, go with well known product/service but utilizing some new technology, or using known product/service and utilizing known technology. Each choice has advantages and disadvantages. At Formation, the technology is already chosen and in mostly deployed. Now, the issue is to discover the bottlenecks in that technology and deal with them on a daily basis. And there will be a lot of bottlenecks: the inputs are not stable, and the throughputs are not stable, either. Thus, the outputs will vary and the clients will complain. The end goal of this phase is to reach a level of mass production of quality products and services, under more or less standardized conditions. By adding more routine and divisibility to the existing technology, the company matures to Expansion. It makes possible to introduce more standards in the technology and reduce the amount of downtime. As the company grows and gain more customers, it is able to introduce new products and services. By introducing highly standardized processes, gives a possibility to free up some space for some tailored technologies, which a dominant characteristic of Transition. Having many scars from the past mistakes, the company now is able to introduce new products and services. At SeiJuku, there is a full balance between the inputs, throughputs, and outputs: the company is in position to easily replicate its successful technology models anywhere and anytime. Time-consuming throughput is what characterizes a company at Saturation - it takes a long time to turn the inputs into outputs. Frequently, the company buys technologies from some other companies for the sake of in-house development.
Entity Money Over SeiJuku Lifecycle There are many financial ratios aimed to show the financial health of a company. Our interest is not in those ratios but how different companies can be compared regarding the entity money by using the following attributes: supply, price, return, and circulation. Supply means ability to access different sources of capital; price is the value paid for that capital; return means how fruitful is that capital; circulation means how accessible that capital is for different parts of the company. At Formation, the founder’s credibility is equal to the organizational credibility for the money market. Internally, the money is mostly spent on feeding the production. Working with under-capitalization and negative cash flow as well as constantly being hungry for cash, are the dominant characteristics of the organization in this phase. The company at Expansion is revenue-driven. Operating in a more supportive environment means that the organization can more easily access the money market, not only the banks and the clients as it used to be in the earlier phase. Even some investors can express some interest of putting money in developing new product/service lines or financing the current operations. Of course, the price of that capital is still high. In Transition, the focus is changing: the organization is profit-driven. Now the organization cuts the costs and maybe even rejects some sales that are not profitable enough. The full attention is given to the profit/loss philosophy. The cost centers in this phase slowly get power. What it used to be just an expense, now is becoming a necessity – the cost centers slowly take control of the internal money-flow. In terms of sales results, companies in SeiJuku have even better results than those of Expansion: they make money and grow. The main difference between Expansion and SeiJuku organizations is predictability: companies at Expansion know how to make money, companies at SeiJuku know why they are going to make money. The companies in Expansion have a difference, for better and for worse, between budget and actual performance; the companies in SeiJuku have aggressive budgets, but the variance is within a predictable and tolerable range. Company in Saturation is cash-rich, but the General Administration expenses keep on growing. The budget becomes pretty inflexible. Managing money becomes a synonym for managing the business. The financial executives are gaining power, and measurements are taking the place of anything the new power base considers “conceptually soft thinking.” Intuition and judgment play decreasing roles as facts, figures, and formulae rule the day.
Entity Goal Over SeiJuku Lifecycle The goal is: some end result, achieved in some way, within some time frame, by somebody. What is important here is that the goals change as the company moves in lifecycle. The founder’s goals are equal to the company’s goals at Formation: produce more in order to survive. The goals are usually driven by the client: whatever they need, has to be met. They are usually achieved through short-term tactics without long term strategic planning. As the organization grows, under the pressure of more knowledgeable employees in the production and more experienced management, the original goals are being revisited and modified adding more realistic components to each goal. The founder used to have the exclusive right to establish goals. Now, at Expansion having accountable employees in the organization, makes possible for employees to add new organizational goals. Encouraged by the past success, the organization becomes more aggressive and unrealistic in setting its goals. The driving force is “more is better.” Being too optimistic, the organization can often end up with huge gaps between planned and actual results. At Transition, the organizational units (profit and cost centers) set their own goals applying healthy principles of planning and strategy. The organization later summarizes the separate units’ goals into a general corporate goal. The bad news is that the organizational units are in the centre of the internal fight between the founder and the management. This causes a poor coordination between the units and the corporate goal is usually a strange mix without a clearly defined direction. That produces confusion at the top and that confusion goes down, contaminating the units. The organization aims to many different targets simultaneously and usually misses many of them. The process of setting goals in SeiJuku is a two-way street: the main goals are defined at the top and later, they are decomposed into divisional goals. This coordination process goes up-down-up several times, until all differences are reconciled. Once the goals are defined, everyone is chasing his/her own goals. The focus in the first phase was on the revenues, in the second phase it was on sales (sell first, think later), in the third it shifted to the profits. Now, the organization is focused on both sales and profits: sell more but without losing the profitability. Since the organization is under full control, it is easy to reach this goal. In other words, this is the first time the organization is chasing both the sales and the profits simultaneously. The process of setting the strategic goals in Saturation is less aggressive: they are still defined at the top and later they are decomposed into divisional goals. The corporate staff leads the objective-setting processes. Now, the organization is mostly focused on maximizing its profit.
Entity Task Over SeiJuku Lifecycle The management theory and practice has a rich history in exploring the term “task.” However, there are still some differences in defining this term. In order to avoid any ambiguity and confusion, we adopt the following definition of the term “task”: the smallest constituent, the atom of any activity in achieving some goal is called task. So, many tasks, mutually connected, comprise what usually is known as “job.” That job can be performed by one or more persons. We have found that four attributes are sufficient to explain the entity task in any company: configuration, control, complexity, and coordination. Configuration means how the whole process is divided into different tasks; control means how the tasks are connected vertically and how we monitor performing those tasks; complexity means the depth and dispersion of the configuration or degree of horizontal specialization, diversity of hierarchical levels, and dispersity of geographic locations; coordination means horizontal, vertical, and spatial flow of information aimed to integrate all efforts within the system. A good business plan should say something about the configuration which refers to the job division into different tasks. Once the real life of the business starts, the task division drawn in the business plan goes to history! The reality is different. What counts now in the business in Formation is the result: what should we do. What was a beautiful drawing in the prenatal period, becomes an ugly and dirty piece of paper when the company moves to formation. There is no clear task division and no precisely defined lines of control. Getting more customers at Expansion means asking employees to stretch their efforts, sometimes to the limits. Fire is everywhere and urgency is the most frequently used word. This erases the boundaries between different tasks, if some boundaries were even set. Overlapping becomes a dominant job description. By becoming more mature, the company at Transition turns inside and does more precise task division, both vertically and horizontally. The tasks become more complex and that requires more coordination between the tasks themselves and the units they are organized in. At Seijuku, every task is clearly defined in “what should be done, how it should be done, and by when it should be done.” What is new now at SeiJuku, another component is added: whom do you need to achieve what should be done. That stimulates a healthy union of different jobs working together in unison. One of the thickest documents of a company at Saturation is its Job Description Book, or whatever name is used to describe the task division throughout the company. Teams of people, if not whole departments, make a living out of defining every single activity in the company, going to the highest possible granularity. In reality, this stays just a document somewhere in somebody’s dryer and will be pulled out just in cases to blame somebody for something.
Entity Management Over SeiJuku Lifecycle One way of defining the term “management” is by the functions the management performs: organizing, directing, motivating, planning, monitoring, etc. In order to compare management of different companies, we have found that four attributes of this entity are sufficient to explain it: accomplishing, regulating, creating, and uniting. Accomplishing refers to the level of success of performing the management role; regulating means the way management achieves its role; creating means using new approaches in performing the management role; uniting means integrating the role of management with the rest of the company. At Prenatal, the future founders “bet on dreams will come true.” When they start the business, their strong will and hand stand between those dreams and the success of the company. All vital managerial functions are concentrated in the founders - relations with clients, vendors, financial institutions, and labor market. Many times, it looks like autocratic management, without in-depth expertise in management, with very little or no delegation, and without formal meetings organization-wide. While approaching the Expansions, the founders’ confidence in their employees starts growing and some ad-hoc delegation of authority can take place. The delegation will be limited only to routine situations; when it comes to something new, the founder will still be the main character. The managerial process now is creativity-focused. Being organized into divisions at Transition, generates competition between those divisions. Sometimes it is a healthy competition, sometimes it is not. The managers of these divisions are forced to make those divisions successful. In doing so, they have to apply best practices. Simultaneously, an internal fight for getting control over the company is taking place and those managers are actively involved in that fight. From time to time, that fight can get really ugly. At SeiJuku, the top management is mostly focused on the regulating aspects, putting control in all places and monitoring the implementation of polices agreed upon. “Managing by goals” or by balance sheet, becomes a dominant pattern in the company. By setting the right and motivational goals, as well as by right assignment of those goals, keeps the company’s vitality at its peak. The management in Saturation moves from an active risk approach to a static risk approach: in the previous phases, when the company’s portfolio was frequently changing, the management used to identify the risk sources and used to make analyses of the past return focusing on what is going to be the gain of taking some risk; now, in Saturation, the management turns into measuring and predicting the shortfalls – what we can lose if we take some risk.
Entity Employee Over SeiJuku Lifecycle There are many diagnostic instruments that deal with employees - like personality inventories, attitude tests, motivation tests, conflict handling situational tests, teamwork acceptance tests, or ability tests. These instruments usually are questionnaires and, based on the achieved results, the employees can be classified into different categories. We do not want to duplicate those efforts. Our interest is in how disharmonies appear in the entity employee and how different businesses can be compared to each other based on their employees. We have found that four attributes are sufficient to explain the entity employee in any company: productivity, compliance, individuality, and synergy. Productivity means ability to produce the right results, compliance means to produce in the right way, individuality means producing in a distinct way, and synergy means to produce together. The typical employees at Formation posses a set of specific traits that can be generally described as result oriented people. They are interested in results, distinctly action-oriented and are both hard-working and hard-driving. Since the result is the king at this stage, the employees are asked to do whatever it takes to be productive. This means no system in place that has to be followed, no rules to obey by, no clear processes to apply. At Expansion, it takes more innovative people, people who perceive opportunities and take chance to chase them. The product/service portfolio is growing by adding new products or services, the number of clients is increasing, the business enters new market segments. Thus, the employees are promoted based on their achievements in gaining new customers. The employees are praised for their pro-activeness and good communication skills. While approaching Transition, employees are somehow forced to get into their turfs - it is a whole culture in the company that pushes employees to belong somewhere. The free communication practiced at the earlier stages, now becomes more formal. The friendliness and honesty, frequently is replaced by impatience and hidden agendas. Marking territory becomes a general behavior pattern. SeiJuku, by definition, means the best company to work for. So, producing desired results in desired way while continuously innovating and improving becomes part of the everyday operations. The communication is productive formal, employees are supportive to each other in a constructive way. Transferring knowledge and training new employees is of the highest value. Everyone feels proud of being part of something good and respectable. When the company starts losing its vitality and slides into Saturation, the employees simply accept that trend - unfriendly cooperation, chasing personal goals and survival only, many setups, under the table kicks. And everything is wrapped in a very nice and formal language. Achieving results and creativity comes second; what counts is the system, control, and rules.
Entity Reward Over SeiJuku Lifecycle Every company has its own goals and in order to achieve them, the company hires people with specific knowledge and skills. To retain those people, company provides rewards. In order to compare the rewards of different companies, four attributes of this entity are sufficient: performance, security, profit sharing, and status. The first attribute, performance refers to the level of achieving the goals; security means compensation not directly tied with performance but for the time and events that people do not work; profit sharing means getting part of the company’s wealth based on the contribution; status means supplemental rewards that are not of monetary nature but emphasize the status of the manager/employee in the company. The dominant way of rewarding at Formation is “pay-per-performance” which means monetary reward (money) provided in short term - weekly, bi-weekly, or monthly. The amount of money paid, usually depends on the quantity of products manufactured or services delivered. Very often, dependability and loyalty can be criteria for determining the amount of the reward. The rewards at Expansion are extended with short-term bonuses. The role of the founder is still crucial in determining the amount of the bonuses. With moving towards the next phase, the things are getting little bit different: the founder still determines the amount of bonuses for some particular organizational units but the unit managers are given the right to determine the individual bonuses of the employees within the unit. The founder still determines the individual bonus of that manager. The company at Transition moves toward compensation based on profitability. The profitability is a result of the conditions in several entities and often is difficult to measure it. This is the reason why this compensation policy cannot be consistent. Because of the internal power games, the units sometimes misrepresent their profitability and as an end result we have rewards for wrong behavior. The company introduces stock options as a reward for the top management, sometimes even for the lower levels, too. At SeiJuku, a diversity of rewards recognizes different kinds of performers. Front-line supervisors and managers get salary along with bonuses for individual achievement. Middle managers get proportionately lower salaries with more profit sharing and stock options. Top management gets compensation packages that motivate them: conservative salaries supplemented by extensive opportunities for profit sharing and stock options In Saturation, there is less flexibility of rewards’ recognition. The existing reward system starts loosing its basic connection with the company’s long-term strategy. What really counts is how people do their jobs, not what they really do and produce. This phenomenon is especially prevalent in large organizations where relationships between entities are so complex that it’s almost impossible to attribute a specific contribution to any single individual.
Entity Information Over SeiJuku Lifecycle The information is power. This is so true nowadays, in Internet era. When we say information, we mean every data regarding some of the entities within the company. There are four basic attributes of the entity information: gathering, organizing, reporting, and flowing. Gathering is related to the way we collect data throughout the company; organizing refers to the way we keep this data; reporting means how we combine and present data; flow means how the data organized into reports that circulate throughout the company. The information at Formation is mostly of technical nature, spontaneous, unorganized, very often lost between the cracks. The information is collected randomly, usually in a raw format, available only to the founder. The circulation of the information is ad-hoc, when and where – it will be decided by the founder, again. The information goes upward to the founder but some small feedback from him starts going down to the production line. All entities in Expansion establish different relationships regarding the information - what was just an occasional, unorganized, non-systematic and often lost at Formation, now is becoming the “blood vessel” of the organization. That integrates all entities into a whole, although many data coming from the functional units are still inaccurate or wrong. While moving towards the next phase, the organization shows more concern about the information and starts treating it as a valuable asset. The company at Transition is scattered and maybe even geographically too dispersed. It’s very difficult to get the hands around information. What we have in this phase is a lot of data but not too much information. The data is collected at the units’ level and from there on, it is simply summarized without a real integration. The data is not yet fully organized and systematized in a way that will enable a quality managerial use. On the other hand, because of the internal focus and the fight, those data can sometimes be fabricated or counterfeited serving as a tool for the units to achieve their goals. Again, at the corporate level, the information can mislead the company in making bad decisions. All this requires an extensive paperwork to justify the goal and to provide an appropriate alibi for the units. The company at SeiJuku has started establishing the accountability system. Accountability is more than responsibility. Somebody is accountable only when he/she is able to deliver what he/she is responsible for. Some people could be responsible but could not be held accountable. One important part of the definition of the accountability includes the information – without a strong information system the organization cannot establish the accountability system. This system integrates all entities within the organization. The company at Saturation has a strong information system. The system that supposed to integrate all entities within the organization is not functioning properly. The top management doesn’t get all bottom-up news any more. There is evident mismatch between the placed information and the reality.
About Organizational Mission in General The mission is what the organization is going to do, the main direction where to go. The mission usually gives answers to the following questions: What business are we in? Are we in the right field? Should we re-model the business as an answer to the change? Shaping the identity of an organization really begins with defining its mission, its reason for being, its purpose, its focus. The mission is expressed in a mission statement. A mission statement is an enduring statement of purpose for an organization that identifies the scope of its operations in product and market terms, and reflects its values and priorities. Once the mission is defined, its quality can be assessed by using the following criteria: ■ Clarity of Direction: where the company is headed to, long-term orientation. ■ Actionable/purposeful: is the vision/mission supported by action items, do they engage people to stretch their activities. ■ Challenging vs. realistic: does the company make its plans on a realistic basis, how are the creativity and innovations supported in the vision/mission. ■ Unifying: does everyone know the vision/mission of the company and does everyone stand behind them.
About Organizational Mission in General The mission is what the organization is going to do, the main direction where to go. The mission usually gives answers to the following questions: What business are we in? Are we in the right field? Should we re-model the business as an answer to the change? Shaping the identity of an organization really begins with defining its mission, its reason for being, its purpose, its focus. The mission is expressed in a mission statement. A mission statement is an enduring statement of purpose for an organization that identifies the scope of its operations in product and market terms, and reflects its values and priorities. Once the mission is defined, its quality can be assessed by using the following criteria: ■ Clarity of Direction: where the company is headed to, long-term orientation. ■ Actionable/purposeful: is the vision/mission supported by action items, do they engage people to stretch their activities. ■ Challenging vs. realistic: does the company make its plans on a realistic basis, how are the creativity and innovations supported in the vision/mission. ■ Unifying: does everyone know the vision/mission of the company and does everyone stand behind them.
About Organizational Mission in General The mission is what the organization is going to do, the main direction where to go. The mission usually gives answers to the following questions: What business are we in? Are we in the right field? Should we re-model the business as an answer to the change? Shaping the identity of an organization really begins with defining its mission, its reason for being, its purpose, its focus. The mission is expressed in a mission statement. A mission statement is an enduring statement of purpose for an organization that identifies the scope of its operations in product and market terms, and reflects its values and priorities. Once the mission is defined, its quality can be assessed by using the following criteria: ■ Clarity of Direction: where the company is headed to, long-term orientation. ■ Actionable/purposeful: is the vision/mission supported by action items, do they engage people to stretch their activities. ■ Challenging vs. realistic: does the company make its plans on a realistic basis, how are the creativity and innovations supported in the vision/mission. ■ Unifying: does everyone know the vision/mission of the company and does everyone stand behind them.
About Organizational Mission in General The mission is what the organization is going to do, the main direction where to go. The mission usually gives answers to the following questions: What business are we in? Are we in the right field? Should we re-model the business as an answer to the change? Shaping the identity of an organization really begins with defining its mission, its reason for being, its purpose, its focus. The mission is expressed in a mission statement. A mission statement is an enduring statement of purpose for an organization that identifies the scope of its operations in product and market terms, and reflects its values and priorities. Once the mission is defined, its quality can be assessed by using the following criteria: ■ Clarity of Direction: where the company is headed to, long-term orientation. ■ Actionable/purposeful: is the vision/mission supported by action items, do they engage people to stretch their activities. ■ Challenging vs. realistic: does the company make its plans on a realistic basis, how are the creativity and innovations supported in the vision/mission. ■ Unifying: does everyone know the vision/mission of the company and does everyone stand behind them.
About Organizational Structure in General The organization structure is a result of the relationships between all entities. Thus, it is a very dynamic and changeable. Very often, the structure dictates the organization members’ behavior. That is why the structure should be considered as a crucial part in assessing the health of the organization. The organizational structure specifies the organizational groupings - the units in the organization and the relationships between them. Designing the organizational structure begins with the entity task and it continues with all other nine entities. The final shape of the structure is strongly influenced by all ten entities. However, the organizational structure can be evaluated using the following criteria: ■ Configuration and centralization vs. decentralization: it is the degree to which formal authority to make discretionary choices is concentrated in one individual, unit, function, or level in the organization. ■ Coordination, control, and formalization: to achieve common goals, the activities must be coordinated. Coordination can be obtained by a number of means ranging from direct supervision to autonomous, self-managed groups. In addition, the rules in the organization for obtaining a standardized behavior of the employees are covered here. ■ Complexity: it defines the depth and dispersion of the organizational configuration. It is the degree of horizontal, vertical, and spatial differentiation. ■ Incentives: it is the way individuals and their activities in the organization are evaluated and compensated.
About Organizational Mission in General The mission is what the organization is going to do, the main direction where to go. The mission usually gives answers to the following questions: What business are we in? Are we in the right field? Should we re-model the business as an answer to the change? Shaping the identity of an organization really begins with defining its mission, its reason for being, its purpose, its focus. The mission is expressed in a mission statement. A mission statement is an enduring statement of purpose for an organization that identifies the scope of its operations in product and market terms, and reflects its values and priorities. Once the mission is defined, its quality can be assessed by using the following criteria: ■ Clarity of Direction: where the company is headed to, long-term orientation. ■ Actionable/purposeful: is the vision/mission supported by action items, do they engage people to stretch their activities. ■ Challenging vs. realistic: does the company make its plans on a realistic basis, how are the creativity and innovations supported in the vision/mission. ■ Unifying: does everyone know the vision/mission of the company and does everyone stand behind them.
About Organizational Culture in General Organizational Cultures vary in their underlying patterns of values and attitudes. The way people think about such matters as achievement, wealth and material gain, risk, and change may influence how they approach work and their relationships with organizations. In our model, the climate is a result of the interrelationships between all entities. However, there are four dimensions that can be found in almost any organizational culture: ■ Risk/Uncertainty avoidance: is a cultural tendency toward discomfort with risk and ambiguity. It reflects the degree to which people are likely to prefer structured organizational situations. ■ Individualism vs collectivism: is the tendency of a culture to emphasize individual versus organizational (company’s) interests. It reflects the degree to which people are likely to prefer working as individuals or working together in groups. ■ Motivation: a relatively stable level of enthusiasm for achieving the organizational goals, present in the organization for a longer period of time. ■ Internal vs external focus: the level of energy in the organization is somehow limited and it can be spend either externally (in dealing with the market) or internally (in dealing with itself
About Organizational Mission in General The mission is what the organization is going to do, the main direction where to go. The mission usually gives answers to the following questions: What business are we in? Are we in the right field? Should we re-model the business as an answer to the change? Shaping the identity of an organization really begins with defining its mission, its reason for being, its purpose, its focus. The mission is expressed in a mission statement. A mission statement is an enduring statement of purpose for an organization that identifies the scope of its operations in product and market terms, and reflects its values and priorities. Once the mission is defined, its quality can be assessed by using the following criteria: ■ Clarity of Direction: where the company is headed to, long-term orientation. ■ Actionable/purposeful: is the vision/mission supported by action items, do they engage people to stretch their activities. ■ Challenging vs. realistic: does the company make its plans on a realistic basis, how are the creativity and innovations supported in the vision/mission. ■ Unifying: does everyone know the vision/mission of the company and does everyone stand behind them.
About Organizational Accountability in General Responsibility is what results a person is expected to deliver for the task assigned. In other words, responsibility is what somebody is obliged to deliver based on his/her task. Accountability is more than responsibility. Somebody is accountable when he/she knows what to do, has enough means to do it, and knows what is the reward for doing it. This means that some people could be responsible but could not be held accountable. How could that happen? What is the difference between an accountable and a not-accountable organization? The lack of accountability can happen for various reasons and the best way is to analyze the sources of accountability. Below are four criteria for assessing the accountability of an organization: ■ Result Definition: an organization should define the results expected from someone. Those results should be either quantifiable (percentages, portions, etc.) or verifiable (yes-no, achieved-not achieved, etc.) ■ Task Clarity: an organization should make sure the assigned tasks are clear to those who should perform them. The tasks are described in a document usually called Job Description. ■ Ability: an organization is accountable if people assigned some tasks are able to perform those tasks. In other words, the assignments match people’s capabilities (including education, skills, physical abilities). ■ Reward: an organization is accountable if people assigned some tasks know in advance what is the reward or punishment for performing or not performing that task.